CUET PG Economics Coaching - MOST IMPORTANT GDP Numerical
- Aarzoo Sabharwal
- 3 days ago
- 2 min read
What is GDP?
GDP (Gross Domestic Product) is the total monetary value of all final goods and services produced within a country’s borders in a given time period (usually a year or a quarter).
Types of GDP
Type of GDP | Meaning |
Nominal GDP | Measured at current prices (includes inflation) |
Real GDP | Adjusted for inflation → better indicator of growth |
GDP per capita | GDP ÷ population → shows average income level |
5 important MCQs on GDP
MCQ 1
GDP includes:
a) Value of final goods and services
b) Value of intermediate goods
c) Transfer payments (like pensions)
d) Illegal/black-market activities
Correct Answer: a
Explanation: Intermediate goods and transfers are excluded to avoid double counting. Illegal goods are generally not recorded.
MCQ 2
Which of the following will increase India’s GDP?
a) A Japanese company producing cars in Chennai
b) An Indian company producing garments in Bangladesh
c) Purchase of old second-hand machinery
d) A retired person receiving pension
Correct Answer: a
Explanation: GDP counts production within the geographic boundary regardless of nationality.
MCQ 3
Real GDP is preferred over nominal GDP because:
a) It is always larger than nominal GDP
b) It is adjusted for inflation
c) It ignores services sector output
d) It measures only government production
Correct Answer: b
Explanation: Real GDP removes inflation effect using a base year.
MCQ 4
GDP = 3000, Depreciation = 200 NDP (Net Domestic Product) = ?
a) 2800 b) 3200 c) 3000 d) 2600
Correct Answer: a
Explanation: NDP = GDP - Depreciation = 3000 - 200 = 2800
MCQ 5
Which of the following statements is true?
a) GDP per capita shows distribution of income in the country
b) GDP measures only market production
c) GDP includes environmental degradation as a positive contribution
d) Both b and c
Correct Answer: d
Explanation: GDP excludes non-market activity and treats pollution-creating output as positive.
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